ACC 291 Week 1 Practice Quiz

ACC 291 Week 1 Practice Quiz

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 ACC 291 Week 1 Practice Quiz
 

 

 
 

Practice Question 01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 
 
 
 
 

What type of receivable is evidenced by a formal instrument and normally requires the payment of interest?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
A trade receivable
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
An account receivable
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
A note receivable
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Past-due accounts receivables
 

 

 

 

Practice Question 05
 

When is a receivable recorded by a service organization?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
When service is provided on account
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
When the related expenses are incurred
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
When the bill is sent to the customer
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
When the customer pays
 

 

 

Practice Question 10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 
 
 
 
 

At what value are accounts receivable reported on the balance sheet?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Cash (net) realizable value
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Present value
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Maturity value
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Fair market value
 

 

 

Practice Question 21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 
 
 
 
 

Short-term notes receivable are reported at their cash (net) realizable value.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
True
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
False
 

 

 

Practice Question 25

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 
 
 
 
 

Which one of these statements about promissory notes is incorrect?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
The party to whom payment is to be made is called the payee.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
The party making the promise to pay is called the maker.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
A promissory note is not a negotiable instrument.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
A promissory note is more liquid than an account receivable.
 

 

 

 

Practice Question 02
 

Which of the following should be classified as an “other” receivable?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Accounts receivable
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Notes receivable
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Interest receivable
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Trade receivables
 

 

 

Practice Question 03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 
 
 
 
 

What type of receivables result from sales transactions?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Other receivables
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Non-trade receivables
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Trade receivables
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Long-term receivables
 

 

 

 

Practice Question 52
 

Which one of the following is not a method used by companies to accelerate cash receipts?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Offering discounts for early payment
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Writing off receivables
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Selling receivables to a factor
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Accepting national credit cards for customer purchases
 

 

 

 

Practice Question 53
 

Which of the following accounts is debited when a company factors its accounts receivable?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Interest Expense
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Accounts Receivable
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Service Charge Expense
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Loss on Sale of Accounts Receivable
 

 

 

 

Practice Question 57
 

Which of the following is the value at which loans and receivables should be reported under IFRS?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Maturity value
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Cash realizable value
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Amortized cost
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Net of bad debt expense
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